Under Armour posts Q1 net loss of 152 million dollars, sales down 23 percent
Prachi Singh| Monday, May 11 2020
For its first quarter, Under Armour, Inc. reported revenue decrease of 23 percent or down 22 percent currency neutral to 930 million dollars, with approximately 15 percentage points of the decline related to Covid-19 pandemic impacts in the quarter. Wholesale revenue decreased 28 percent to 592 million dollars and direct-to-consumer revenue was down 14 percent to 284 million dollars, representing 31 percent of total revenue. The company said in a statement, net loss was 590 million dollars, while adjusted net loss was 152 million dollars and diluted loss per share was 1.30 dollars, while adjusted diluted loss per share was 34 cents.
Commenting on the first quarter trading, Under Armour President and CEO Patrik Frisk said: “During the first quarter, our results in January and February were tracking well to our plan. Since mid-March, as the pandemic accelerated dramatically in North America and EMEA and retail store closures ensued, we’ve experienced a significant decline in revenue across all markets. As we continue to navigate this crisis, our balance sheet remains well managed, and our leadership team is taking decisive actions to execute against our continued transformation.”
Review of Under Armour’s first quarter results
North America revenue decreased 28 percent to 609 million dollars and revenue from international business decreased 12 percent or 11 percent currency neutral to 287 million dollars, representing 31 percent of total revenue. Within the international business, revenue increased 3 percent or 4 percent currency neutral in EMEA, decreased 34 percent or 32 percent currency neutral in Asia-Pacific and increased 8 percent or 11 percent currency neutral in Latin America.
The company added that apparel revenue decreased 23 percent to 598 million dollars, footwear revenue decreased 28 percent to 210 million dollars and accessories revenue decreased 17 percent to 68 million dollars.
Gross margin for the quarter increased 110 basis points to 46.3 percent compared to the prior year.
Picture:Under Armour newsroom